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You describe a single momentary switch, and at least one light.
Why are you using 120 instead of 24 V?
Does the switch go to a PLC input? Is this to be protected?
What is the maximum series resistance this circuit can tolerate?
As you go from larger to smaller resistance what is the resistance where change of state occurs?
Is the pilot lamp or lamps supplied from a small transformer in the pilot light assembly?
How much resistance can you tolerate in series with a lamp at the 120 V level?
Can you use an LED for the lamp?
What is the peak repetitive voltage you can apply to an input or output without damaging that IO?
With 12 V DC, 25,000 ohms and an narrow field of view LED I can get a rather bright indicator. This is using a high brightness LED.
At 120 V RMS the peak voltage relative to 0 is 170. At 135 V this is 190. Thus, a 200 to 210 V transient limiter might be OK. A transient limiter at the input or output and some resistance at that point is the best location.
Do a search on transorb and TransZorb. These are low voltage zeners and are stacked for higher voltages. With AC you need a bidirectional unit.
http://www.vishay.com/docs/88451/stacking.pdf
MOVs have a much softer limit than zeners.
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